Metaplanet Inc, the Japanese investment company, has decided to borrow 1 billion Japanese yen ($6.8 million) from one of its owners to buy more Bitcoin.
“Asia’s MicroStrategy” borrowed $6.8 million from one of its owners to buy more Bitcoin, just two days after saying it wanted to raise $70 million through a stock rights offering.
It has been decided that Metaplanet will borrow 6 million Japanese yen, or $6.8 million, from one of its owners to buy more Bitcoin.
The loan from Metaplanet Inc shareholder MMXX Ventures has a 0.1% interest rate per year and a term of six months beginning August 8. In a release, the company said it would be paid back immediately.
With the current market price of Bitcoin, the company could buy an extra 118.5 Bitcoins if all of the $6.8 million loans went toward Bitcoin.
This news comes just two days after Metaplanet Inc said it wanted to raise $70 million through a stock rights offering, with $58 million going to Bitcoin investors.
Like MicroStrategy, Metaplanet said again on May 13 that it would use an “entire range of capital market instruments” to increase its Bitcoin reserves.
At first, the company used this approach to protect itself against Japan’s growing debt and the rapidly falling value of the Japanese yen.
The CEO of Metaplanet Inc, Simon Gerovich, said at the Bitcoin 2024 meeting in late July that the company had been a classic “zombie” before this.
Gerovich remembered how hard it was to fix Metaplanet’s finances and pay off its debts before he realized that Bitcoin, the “apex monetary asset,” could help the business do better in the long run.
Bitcoin Treasuries data shows that Metaplanet has bought 246 Bitcoin, worth $13.95 million at today’s market prices. The Bitcoin was bought in seven different transactions.
The average price that the company pays for a Bitcoin is $65,145. Since April 23, when it made its first Bitcoin investment, the price has decreased 12.8%.
The company’s stock price has increased 290% since April 9, when it revealed its Bitcoin plan. It is now trading at $4.39 (643 Japanese yen). There was a high point of $20.50 (3,000 Japanese yen) on July 24. Since then, it has been going down.
On August 5, the Bitcoin market had “Black Monday,” when Bitcoin dropped 10% in just two hours. This drop was made worse by that event.
